How to save on realtors when buying an apartment with a mortgage

What mortgage issues can realtors help solve?

• They will find the best housing option for the client’s needs. Based on the requirements, real estate will be selected that is suitable in terms of cost, area, location, etc.;
• They will tell you about the nuances of obtaining a mortgage loan from different banks and select the most suitable program for the borrower;
• They will help you collect the necessary documents and arrange a time for a meeting with bank representatives;
• They will check the purchased property for encumbrances. They will find out whether there are additional owners, whether the living space is under arrest, whether the housing has a debt for utilities;
• They will resolve issues with insurance of the purchased home, prepare a package of documents for the insurance company;
• By agreement, they will fully support the transaction, from submitting documentation to the bank to moving into housing;
• Many home sellers are wary of selling their home to people taking out a mortgage. Some people are confused about receiving money only after registering the transaction with Rosreestr. Others want to receive money not into an account, but in cash. An experienced realtor will help convince citizens not to be afraid to contact the mortgage option.

What are mortgage realtor services?

The services of a realtor when purchasing an apartment with a mortgage are as follows:

• searching for optimal housing according to client requests - by area, location, cost and other parameters that are important to the buyer;
• selection of the most profitable mortgage program, taking into account the convenient size of the down payment and lending parameters;
• assistance in preparing documents and submitting an application – online or in the office;
• checking the property for encumbrances hidden by the owner and utility debts;
• resolving issues related to insurance of purchased property - preparing documents for concluding a contract;
• support of a mortgage transaction - from submitting documents to concluding a purchase and sale agreement and moving into a new apartment (by additional agreement);
• assistance in negotiations with a seller who does not want to get involved with a mortgage - an experienced specialist will be able to convince him of the absence of risks.

Thus, the list of real estate services is quite extensive and really simplifies the process of conducting a loan transaction for the borrower, especially if he does not have much experience in such matters.

When does it make sense to use the services of a realtor?

1. Your income is small, inconsistent or difficult to confirm;
2. There is no time or opportunity to independently search for suitable housing options and mortgage programs;
3. The credit history is not flawless, there are doubts about the positive decision of the bank.

It is better to contact agency employees rather than private realtors. If the realtor is a representative of a well-known and well-established real estate agency, then the chances of issuing a mortgage increase.

Pay attention to how many years this agency has been operating in the real estate market, and whether it is officially registered. It is also important that the agency’s scope of activity extends to a specific market segment where a transaction is expected to be made (for example, if you need to find luxury housing, or housing in the suburbs, etc.).

How to choose an apartment?

After carefully analyzing the situation, we began searching for an apartment. I turned to my friends with a request to recommend a realtor, reviewed the websites of real estate agencies and specialized media. The meeting with the “free realtor” disappointed me: the cost of the services is high, the number of apartments for showing is limited, and there is no responsibility. Finding an apartment on your own required a lot of time. The advantage of working with an agency: the availability of documents on permission to operate, an agreement that stipulates the responsibility of the realtor, and payment for services after the fact, i.e. after concluding a transaction to purchase real estate. There was another plus: the opportunity to receive the missing amount in installments from the agency (this service is provided by some real estate agencies).

Tips when choosing an agency: pay attention to extensive experience in the real estate market, favorable reviews from clients, and the existing branch network. Our realtor pre-selected apartments that met the requirements. Options for apartments were sent to me by email, and my son, together with the realtor, personally visited the apartments. Within a month, the apartment was chosen. However, its cost, as I expected, turned out to be higher than the amount I had.

How much will a realtor have to pay?

On average, the cost of services is 2-5% of the transaction amount. If an applicant for a mortgage has a bad credit history, is a citizen of another state, etc., the cost may increase to 10-12%.

In addition, the cost of services depends on the type of property you want to purchase. The most expensive thing you will have to pay is to buy a room.

It should be noted that you can order one service from a realtor, and not the entire transaction. This will save you a significant amount. Don't expect a miracle from a realtor. No one can give a 100% guarantee of mortgage loan approval. Each bank has its own requirements for the borrower, which cannot be circumvented in any way. Let’s say it’s impossible to get a mortgage from Sberbank without a down payment, even with the participation of an intermediary.

Does it make sense to contact them?

If the potential borrower has the necessary knowledge and experience, then you can do without an intermediary in obtaining a mortgage loan.

An unprepared person can make mistakes, waste a lot of time, but save money. In general, whether to do everything yourself or ask for help - everyone decides for themselves . Let's note the pros and cons of using a mortgage broker.

• you will have to spend a certain amount of money, not a small one, let’s say;
• there is a risk of running into an unscrupulous “assistant” who will not offer the best option for housing or lending.

How to choose a competent realtor?

When concluding a transaction with a realtor, be sure to enter into a service agreement. It can be certified by a notary, but is not a mandatory requirement. You will need to provide documents confirming the ownership of housing - a purchase and sale agreement, a certificate of inheritance, a gift agreement, etc.

1. Request a photocopy of the passport and documents that confirm the person’s authority to engage in real estate activities.
2. If a person acts under a power of attorney on behalf of the company, ask to see the power of attorney.
3. You may request to provide the constituent documents of the real estate company (a certificate of state registration, a certificate of tax registration is required).
4. It would be a good idea to find out the legal address of the company and check whether the legal address coincides with the actual one.
5. Read the contract carefully. Pay special attention to the small print.
6. The contract must contain information whose responsibility will be to collect documents. The realtor is usually given a power of attorney to collect documentation.
7. Discuss the obligations that you must fulfill under the contract. For example, a schedule for visiting housing options is drawn up, and the possibility of rescheduling meetings is provided. The realtor may require information about your marital status and work schedule. This is common practice and allows the mediator to better align with the client's interests.
8. The contract must indicate the possibility of involving third parties, for example, lawyers. Of course, the cost of their services is also discussed in advance.
9. A serious underestimation of their services by a realtor should alert you. Either this is an incompetent specialist, or they will charge you a hidden commission in the future. The housing you are offered to buy cannot be cheaper by more than 20% of the market price. This is a sure sign that something is wrong either with the apartment or with the documents for it;
10. The contract usually provides for a penalty that the parties bear in the event of non-fulfillment or improper fulfillment of their obligations. The penalty is negotiated by the parties, usually it is 3-6% of the transaction amount.
11. At the end of the transaction, you have the right to request a certificate of completion of work.

Weigh the pros and cons before contacting realtors. Still, the amount of remuneration they receive is quite significant.

How realtors make a mortgage without a down payment

Very often, lawyers receive requests on how to apply for a loan without a down payment. Banks are very reluctant to lend on such terms. It is believed that realtors arrange a mortgage without a down payment. Or at least they can help resolve this issue.

In fact, we are talking about the fact that the intermediary, buyer and seller, with the participation of an appraisal company, deliberately inflate the transaction amount, for example, by 15%. And this extra money goes towards paying the initial fee. Of course, such a scheme is illegal. But some real estate companies agree to take such a step in order to receive their commissions.

Realtors may also offer to take out a loan for the down payment. This may lead to refusal.

We would recommend that borrowers contact those banks that are truly willing to lend without an advance. For example, VTB and Sberbank have similar proposals. True, to obtain such a loan, you must either have benefits from the state or provide additional security (other housing, a car, a plot of land).

Parking space/Garage

Interest rate - from 9.5% per annum Down payment - from 30% Loan for the purchase of a Parking Space/Garage, accompanying a mortgage loan for a home

Your actions if you decide to buy an apartment using a mortgage loan:

1. Contact us by phone, through our website or in person, arrange a meeting: get detailed advice on purchasing an apartment and the products of partner mortgage banks, provide the mortgage broker with the necessary information.
2. Consider several proposed options for mortgage products, discuss them with a mortgage broker, and choose the one that suits you best.
3. With the help of a realtor, choose the apartment option that suits you.
4. Sign the apartment purchase and sale agreement. Carry out calculations in the prescribed manner.
5. Receive the owner's title and documents for the apartment.
6. Accept the apartment according to the deed of transfer and move in.

The role of a realtor in a mortgage

November 17, 2012 mortgage

Any real estate transaction can be possible if certain conditions are met. Of course, the most important of these conditions is the availability of material resources. But an equally important component is the residential property itself, in particular the apartment. For many buyers who have sufficient funds to purchase an apartment, or who have taken out a mortgage, a new problem arises - how to find suitable options for themselves, accurately prepare all the necessary purchase and sale documents, and monitor the proper execution of the transaction.

In the case when an apartment is purchased with one’s own funds, these issues do not seem too complicated, since all the buyer’s attention is focused on one operation (namely purchase and sale ). And if buyers apply for a mortgage, it becomes difficult to keep track of everything - after all, a lot of time is spent on drawing up a mortgage loan agreement and negotiations with the bank, which means there is simply no time left to search for a decent option for purchase.

In this case, experts recommend seeking help from professional realtors. The help of a real estate agent can, firstly, significantly reduce the time spent searching for suitable options, and secondly, competently and quickly prepare all the necessary documents.

The client is absolutely free to choose a real estate agency; the bank issuing the mortgage does not have the right to impose its own realtors. The client selects the agent independently, because it is he who pays for his work, and not the bank. At the same time, there is a possibility that the hired agent will not only help in finding options and completing the transaction, but will also help resolve all unclear or difficult situations with the loan.

How to determine whether you need the services of real estate agencies or not? Don’t forget that realtor fees are quite high. There are agencies that charge up to 4 percent of the cost of housing for the services provided. And not everyone is capable of parting with such, to put it mildly, a considerable amount of money.

However, for every minus there is a plus. We must not forget that when choosing an apartment for subsequent purchase through a mortgage, it is especially difficult to choose an option that will suit not only the buyer, but also the bank and the mortgagee. In addition, the condition of the apartment, as well as the entire house in which it is located, must be of such a level that the insurance company agrees to insure it. It is also very difficult to find a potential seller willing to sell a home with a mortgage. Realtors help resolve such issues quickly and efficiently. Real estate agents, knowing all the nuances of banks’ requirements for mortgage loans, will select only those options that are suitable for both the mortgagee and the lender. And at the same time, they will take on the work with the seller’s objections to the mortgage transaction.

Before contacting a real estate agency, you need to clarify the specifics of their work. If an agency offers a wide selection of apartments, this means that its list of options for houses and cottages is limited, therefore, if your interest is a separate apartment, an intermediary specializing in home ownership is unlikely to help you.

From all of the above, we can conclude that when registering housing through a mortgage, you don’t need to resort to the services of an intermediary if you are absolutely sure that you can handle it on your own, especially if the budget is limited. If you can afford to pay for the services of a realtor and thereby simplify the process of buying a home, you should definitely contact an agency.

How to buy an apartment through a realtor with a mortgage

How to apply for a mortgage with a realtor (what is included in the services):

1. Selection of a bank with the most favorable interest rates or tasty offers for broker clients;
2. Informing about additional payments when applying for a mortgage loan and purchasing housing;
3. Takes on the job of sending packages of documents for approval by the buyer as a future mortgage holder to several banks;
4. Search and selection of living space that meets the requirements of the bank and the future owner;
5. Negotiations with the mortgage manager of the bank regarding the collection of documents, approval of the selected property, settlement procedures for the transaction, etc.;
6. Working with the home seller to collect documents for the bank;
7. On behalf of the buyer, will collect documents for title insurance;
8. Drawing up a transaction plan, setting a date, providing advance support;
9. Consulting the buyer of an apartment at all stages of the transaction;
10. Checking “legal purity” (as far as possible).

Realtor services when buying an apartment with a mortgage: cost and necessity

Will the buyer be able to do the above list of tasks independently? Yes, if you have the skills and knowledge of the algorithm of actions.

Will the buyer be able to save on the transaction if he pays for the services of an agent when purchasing an apartment? Let's figure it out. The bank controls the transaction, and it also checks the apartment for claims from third parties, because it's in his best interest. Other tasks, so-called vanity - collecting and preparing a package of documents for approval of the home you like and for insurance.

At the same time, the cost of agent services ranges from 2 – 5% of the property price. For example, with the market value of a home being 7 million rubles, brokerage services will cost the buyer from 140 thousand rubles to 350,000 rubles.

The cost increases if the transaction is “alternative”, i.e. you need to sell your apartment and buy a replacement.

At the same time, the agent solves the most difficult issue - the selection of housing. What is it, step by step order:

1. Weeding out fake advertisements from real estate agencies (essentially his colleagues);
2. Calling advertisements and identifying not only suitable real estate properties, but also their readiness for sale;
3. Organizing inspections and identifying deficiencies in the home and documents for it;
4. Leveling (reducing) the risks of the transaction, or recommending a complete refusal to purchase housing that is too risky.

Now let’s multiply this work by a professional broker and get an approximate price for services, as a result of which the buyer not only saves time, but also reduces the risks when purchasing a home. What you value it at is how much it is worth.

And don’t forget that in the realtor profession, 90% are crooks and incompetent specialists. Consequently, the quality of a realtor’s mortgage service depends on the professionalism of a particular individual.